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(2) by inserting ‘‘landfill gas, incremental hy-
1
dropower, ocean’’ after ‘‘wind, biomass,’’.
2
(c) E
LIGIBILITY
W
INDOW
.—Section 1212(c) of the En-
3
ergy Policy Act of 1992 (42 U.S.C. 13317(c)) is amended
4
by striking ‘‘during the 10-fiscal year period beginning
5
with the first full fiscal year occurring after the enactment
6
of this section’’ and inserting ‘‘before October 1, 2013’’.
7
(d) P
AYMENT
P
ERIOD
.—Section 1212(d) of the Energy
8
Policy Act of 1992 (42 U.S.C. 13317(d)) is amended by in-
9
serting ‘‘or in which the Secretary finds that all necessary
10
Federal and State authorizations have been obtained to
11
begin construction of the facility’’ after ‘‘eligible for such
12
payments’’.
13
(e) A
MOUNT OF
P
AYMENT
.—Section 1212(e)(1) of the
14
Energy Policy Act of 1992 (42 U.S.C. 13317(e)(1)) is
15
amended by inserting ‘‘landfill gas, incremental hydro-
16
power, ocean’’ after ‘‘wind, biomass,’’.
17
(f) S
UNSET
.—Section 1212(f) of the Energy Policy Act
18
of 1992 (42 U.S.C. 13317(f)) is amended by striking ‘‘the
19
expiration of’’ and all that follows through ‘‘of this section’’
20
and inserting ‘‘September 30, 2023’’.
21
(g) I
NCREMENTAL
H
YDROPOWER
; A
UTHORIZATION OF
22
A
PPROPRIATIONS
.—Section 1212 of the Energy Policy Act
23
of 1992 (42 U.S.C. 13317) is further amended by striking
24
subsection (g) and inserting the following:
25
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‘‘(g) I
NCREMENTAL
H
YDROPOWER
.—
1
‘‘(1) P
ROGRAMS
.—Subject to subsection (h)(2), if
2
an incremental hydropower program meets the re-
3
quirements of this section, as determined by the Sec-
4
retary, the incremental hydropower program shall be
5
eligible to receive incentive payments under this sec-
6
tion.
7
‘‘(2) D
EFINITION
OF
I
NCREMENTAL
H
YDRO
-
8
POWER
.—In this subsection, the term ‘incremental hy-
9
dropower’ means additional generating capacity
10
achieved from increased efficiency or additions of new
11
capacity at a hydroelectric facility in existence on the
12
date of enactment of this paragraph.
13
‘‘(h) A
UTHORIZATION OF
A
PPROPRIATIONS
.—
14
‘‘(1) I
N GENERAL
.—Subject to paragraph (2),
15
there are authorized to be appropriated such sums as
16
may be necessary to carry out this section for fiscal
17
years 2003 through 2023.
18
‘‘(2) L
IMITATION ON FUNDS USED FOR INCRE
-
19
MENTAL HYDROPOWER PROGRAMS
.—Not more than
20
30 percent of the amounts made available under
21
paragraph (1) shall be used to carry out programs de-
22
scribed in subsection (g)(2).
23
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‘‘(3) A
VAILABILITY
OF
FUNDS
.—Funds made
1
available under paragraph (1) shall remain available
2
until expended.’’.
3
SEC. 262. ASSESSMENT OF RENEWABLE ENERGY RE-
4
SOURCES.
5
(a) R
ESOURCE
A
SSESSMENT
.—Not later than 3
6
months after the date of enactment of this title, and each
7
year thereafter, the Secretary of Energy shall review the
8
available assessments of renewable energy resources avail-
9
able within the United States, including solar, wind, bio-
10
mass, ocean, geothermal, and hydroelectric energy resources,
11
and undertake new assessments as necessary, taking into
12
account changes in market conditions, available tech-
13
nologies and other relevant factors.
14
(b) C
ONTENTS OF
R
EPORTS
.—Not later than 1 year
15
after the date of enactment of this title, and each year there-
16
after, the Secretary shall publish a report based on the as-
17
sessment under subsection (a). The report shall contain—
18
(1) a detailed inventory describing the available
19
amount and characteristics of the renewable energy
20
resources, and
21
(2) such other information as the Secretary of
22
Energy believes would be useful in developing such re-
23
newable energy resources, including descriptions of
24
surrounding terrain, population and load centers,
25
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HR 6 EAS1S/PP
nearby energy infrastructure, location of energy and
1
water resources, and available estimates of the costs
2
needed to develop each resource, together with an
3
identification of any barriers to providing adequate
4
transmission for remote sources of renewable energy
5
resources to current and emerging markets, rec-
6
ommendations for removing or addressing such bar-
7
riers, and ways to provide access to the grid that do
8
not unfairly disadvantage renewable or other energy
9
producers.
10
SEC. 263. FEDERAL PURCHASE REQUIREMENT.
11
(a) R
EQUIREMENT
.—The President shall seek to ensure
12
that, to the extent economically feasible and technically
13
practicable, of the total amount of electric energy the Fed-
14
eral Government consumes during any fiscal year—
15
(1) not less than 3 percent in fiscal years 2003
16
through 2004,
17
(2) not less than 5 percent in fiscal years 2005
18
through 2009, and
19
(3) not less than 7.5 percent in fiscal year 2010
20
and each fiscal year thereafter,
21
shall be renewable energy. The President shall encourage the
22
use of innovative purchasing practices by Federal agencies.
23
(b) D
EFINITION
.—For purposes of this section, the
24
term ‘‘renewable energy’’ means electric energy generated
25
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HR 6 EAS1S/PP
from solar, wind, biomass, geothermal, fuel cells, municipal
1
solid waste, or additional hydroelectric generation capacity
2
achieved from increased efficiency or additions of new ca-
3
pacity.
4
(c) T
RIBAL
P
OWER
G
ENERATION
.—The President shall
5
seek to ensure that, to the extent economically feasible and
6
technically practicable, not less than one-tenth of the
7
amount specified in subsection (a) shall be renewable energy
8
that is generated by an Indian tribe or by a corporation,
9
partnership, or business association which is wholly or ma-
10
jority owned, directly or indirectly, by an Indian tribe. For
11
purposes of this subsection, the term ‘‘Indian tribe’’ means
12
any Indian tribe, band, nation, or other organized group
13
or community, including any Alaskan Native village or re-
14
gional or village corporation as defined in or established
15
pursuant to the Alaska Native Claims Settlement Act (43
16
U.S.C. 1601 et seq.), which is recognized as eligible for the
17
special programs and services provided by the United States
18
to Indians because of their status as Indians.
19
(d) B
IENNIAL
R
EPORT
.—In 2004 and every 2 years
20
thereafter, the Secretary of Energy shall report to the Com-
21
mittee on Energy and Natural Resources of the Senate and
22
the appropriate committees of the House of Representatives
23
on the progress of the Federal Government in meeting the
24
goals established by this section.
25
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SEC. 264. RENEWABLE PORTFOLIO STANDARD.
1
Title VI of the Public Utility Regulatory Policies Act
2
of 1978 is amended by adding at the end the following:
3
‘‘SEC. 606. FEDERAL RENEWABLE PORTFOLIO STANDARD.
4
‘‘(a) M
INIMUM
R
ENEWABLE
G
ENERATION
R
EQUIRE
-
5
MENT
.—For each calendar year beginning in calendar year
6
2005, each retail electric supplier shall submit to the Sec-
7
retary, not later than April 1 of the following calendar year,
8
renewable energy credits in an amount equal to the required
9
annual percentage specified in subsection (b).
10
‘‘(b) R
EQUIRED
A
NNUAL
P
ERCENTAGE
.—(1) For cal-
11
endar years 2005 through 2020, the required annual per-
12
centage of the retail electric supplier’s base amount that
13
shall be generated from renewable energy resources shall be
14
the percentage specified in the following table:
15
Required annual
‘‘Calendar Years
percentage
2005 through 2006 .....................................................................
1.0
2007 through 2008 .....................................................................
2.2
2009 through 2010 .....................................................................
3.4
2011 through 2012 .....................................................................
4.6
2013 through 2014 .....................................................................
5.8
2015 through 2016 .....................................................................
7.0
2017 through 2018 .....................................................................
8.5
2019 through 2020 .....................................................................
10.0.
‘‘(2) Not later than January 1, 2015, the Secretary
16
may, by rule, establish required annual percentages in
17
amounts not less than 10.0 for calendar years 2020 through
18
2030.
19
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‘‘(c) S
UBMISSION OF
C
REDITS
.—(1) A retail electric
1
supplier may satisfy the requirements of subsection (a)
2
through the submission of renewable energy credits—
3
‘‘(A) issued to the retail electric supplier under
4
subsection (d);
5
‘‘(B) obtained by purchase or exchange under
6
subsection (e); or
7
‘‘(C) borrowed under subsection (f).
8
‘‘(2) A credit may be counted toward compliance with
9
subsection (a) only once.
10
‘‘(d) I
SSUANCE OF
C
REDITS
.—(1) The Secretary shall
11
establish, not later than 1 year after the date of enactment
12
of this section, a program to issue, monitor the sale or ex-
13
change of, and track renewable energy credits.
14
‘‘(2) Under the program, an entity that generates elec-
15
tric energy through the use of a renewable energy resource
16
may apply to the Secretary for the issuance of renewable
17
energy credits. The application shall indicate—
18
‘‘(A) the type of renewable energy resource used
19
to produce the electricity,
20
‘‘(B) the location where the electric energy was
21
produced, and
22
‘‘(C) any other information the Secretary deter-
23
mines appropriate.
24
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HR 6 EAS1S/PP
‘‘(3)(A) Except as provided in paragraphs (B), (C),
1
and (D), the Secretary shall issue to an entity one renew-
2
able energy credit for each kilowatt-hour of electric energy
3
the entity generates from the date of enactment of this sec-
4
tion and in each subsequent calendar year through the use
5
of a renewable energy resource at an eligible facility.
6
‘‘(B) For incremental hydropower the credits shall be
7
calculated based on the expected increase in average annual
8
generation resulting from the efficiency improvements or
9
capacity additions. The number of credits shall be cal-
10
culated using the same water flow information used to de-
11
termine a historic average annual generation baseline for
12
the hydroelectric facility and certified by the Secretary or
13
the Federal Energy Regulatory Commission. The calcula-
14
tion of the credits for incremental hydropower shall not be
15
based on any operational changes at the hydroelectric facil-
16
ity not directly associated with the efficiency improvements
17
or capacity additions.
18
‘‘(C) The Secretary shall issue two renewable energy
19
credits for each kilowatt-hour of electric energy generated
20
and supplied to the grid in that calendar year through the
21
use of a renewable energy resource at an eligible facility
22
located on Indian land. For purposes of this paragraph,
23
renewable energy generated by biomass cofired with other
24
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HR 6 EAS1S/PP
fuels is eligible for two credits only if the biomass was
1
grown on the land eligible under this paragraph.
2
‘‘(D) For renewable energy resources produced from a
3
generation offset, the Secretary shall issue two renewable
4
energy credits for each kilowatt-hour generated.
5
‘‘(E) To be eligible for a renewable energy credit, the
6
unit of electric energy generated through the use of a renew-
7
able energy resource may be sold or may be used by the
8
generator. If both a renewable energy resource and a non-
9
renewable energy resource are used to generate the electric
10
energy, the Secretary shall issue credits based on the propor-
11
tion of the renewable energy resource used. The Secretary
12
shall identify renewable energy credits by type and date of
13
generation.
14
‘‘(5) When a generator sells electric energy generated
15
through the use of a renewable energy resource to a retail
16
electric supplier under a contract subject to section 210 of
17
this Act, the retail electric supplier is treated as the gener-
18
ator of the electric energy for the purposes of this section
19
for the duration of the contract.
20
‘‘(6) The Secretary may issue credits for existing facil-
21
ity offsets to be applied against a retail electric supplier’s
22
own required annual percentage. The credits are not
23
tradeable and may only be used in the calendar year gen-
24
eration actually occurs.
25
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‘‘(e) C
REDIT
T
RADING
.—A renewable energy credit
1
may be sold or exchanged by the entity to whom issued or
2
by any other entity who acquires the credit. A renewable
3
energy credit for any year that is not used to satisfy the
4
minimum renewable generation requirement of subsection
5
(a) for that year may be carried forward for use within
6
the next 4 years.
7
‘‘(f) C
REDIT
B
ORROWING
.—At any time before the end
8
of calendar year 2005, a retail electric supplier that has
9
reason to believe it will not have sufficient renewable energy
10
credits to comply with subsection (a) may—
11
‘‘(1) submit a plan to the Secretary dem-
12
onstrating that the retail electric supplier will earn
13
sufficient credits within the next 3 calendar years
14
which, when taken into account, will enable the retail
15
electric supplier’s to meet the requirements of sub-
16
section (a) for calendar year 2005 and the subsequent
17
calendar years involved; and
18
‘‘(2) upon the approval of the plan by the Sec-
19
retary, apply credits that the plan demonstrates will
20
be earned within the next 3 calendar years to meet
21
the requirements of subsection (a) for each calendar
22
year involved.
23
‘‘(g) C
REDIT
C
OST
C
AP
.—The Secretary shall offer re-
24
newable energy credits for sale at the lesser of 3 cents per
25
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